Skip to main content

2021 | OriginalPaper | Buchkapitel

4. Basic Income Beyond the Negative Income Tax (the 80s and 90s and a Bit Before)

verfasst von : Prof. Wayne Simpson

Erschienen in: Is Basic Income Within Reach?

Verlag: Springer International Publishing

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

American flirtation with a negative income tax ended with a turn toward the Earned Income Tax Credit for low-income families. The post-war U.S. and European welfare systems provided inadequate benefits with bureaucratically administered work conditions that imposed high tax rates on earnings to discourage work and exit from welfare, even as issues around poverty, inequality, occupational polarization, precarious employment and European unemployment manifested. The concept of a universal basic income emerged as a means to assert citizens’ rights and reinvigorate labour by disconnecting income assistance from a potentially dehumanizing wage labour market, leading to the formation of the Basic Income Europe Network, although political success was limited to the introduction of a Dutch partial basic income plan and an Alaskan universal dividend from oil revenues.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Fußnoten
1
I include the United Kingdom in the terms “Europe” or “Western Europe” as opposed to “continental Europe” or “continental Western Europe.”
 
2
In practice, the official U.S. poverty standard was essentially neglected for political purposes and simply adjusted according to general price inflation during the rest of the twentieth century (Burkhauser 2009).
 
3
Intermediate or hybrid approaches, using a weighted average of the absolute and relative poverty measures, were also feasible (Foster 1998) but the choice of weights would remain arbitrary and the data demands would be more formidable.
 
4
If n is the number of household members, then household income is adjusted by nα, where α is the equivalence scale elasticity, α = 0.5 is the square-root adjustment rule, and α = 1 represents no economies of scale in household consumption (so simply divide by the number of household members). Values between 0.5 and 1 have been considered as well as applying varying weights to each additional household member. See, for example, the OECD note at http://​www.​oecd.​org/​els/​soc/​OECD-Note-EquivalenceScale​s.​pdf.
 
5
The Gini coefficient is the most commonly used measure of inequality, based on the area between the Lorenz curve (which plots households from poorest to richest by their cumulative income shares) and the line of perfect equality. Burniaux and his colleagues present other measures of inequality, but they show a similar pattern to the Gini coefficient.
 
6
One solution is to adopt an alternative relative standard, such as 40% of the median adjusted household income, which has been explored in some OECD publications.
 
8
The 1996 reforms required states to enrol a minimum fraction of welfare recipients in a work activity or something comparable, including job search but not education and training programs, leading to a reduction in exemptions from work and stronger sanctions for non-compliance at the discretion of the state. These measures fortified existing work conditions associated with the receipt of welfare benefits and, of course, the receipt of the burgeoning Earned Income Tax Credit.
 
9
The results in this and the succeeding paragraph are based on Eardley et al. (1996, Tables 2.2 and 2.4) with my calculations for the EU-15, which are a simple average for all 15 countries.
 
10
Figures include cash assistance tagged to housing in Sweden and France.
 
11
This would include AFDC-UP but not General Assistance for families and individuals without child dependents, which is administered by the states and varies accordingly. It would also not apply to disability programs which are typically more generous but require medical certification.
 
12
The Dutch Guilder was valued at 3.4 to the U.S. dollar in mid-1985, so the partial basic income would have amounted to about $132 per month per adult based on a national assistance rate of about $880 per couple. As a partial basic income, this would represent about 28% of the U.S. poverty threshold for a single adult under 65 at the time ($5593 per annum).
 
14
At the mid-1992 exchange rate of 0.66 USD per 1 DM, this would amount to $6070 or about 83% of the U.S. poverty threshold for a single adult under 65 at the time ($7299 per annum).
 
15
Footnote 80, p. 298. As of December, 2000 the euro was worth $1.51 in U.S. dollars, such that the guarantee would have been $3170, about 38% of the U.S. poverty line of $8350 in 2000 for a single adult under 65. Added to assistance benefits, which were about three times the guarantee for someone without taxable income, the refundable credit would have raised a single adult above the U.S. poverty line.
 
Literatur
Zurück zum Zitat Autor, David. 2015. Why Are There Still So Many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives 29 (3, Summer): 3–30. Autor, David. 2015. Why Are There Still So Many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives 29 (3, Summer): 3–30.
Zurück zum Zitat Bailey, Martin Neil, and Jacob Funk Kirkegaard. 2004. Transforming the European Economy Washington, DC: Peterson Institute for International Economics. Bailey, Martin Neil, and Jacob Funk Kirkegaard. 2004. Transforming the European Economy Washington, DC: Peterson Institute for International Economics.
Zurück zum Zitat Betti, Eloisa. 2018. Historicizing Precarious Work: Forty Years of Research in the Social Sciences and Humanities. International Review of Social History 63 (2, August): 273–319. Betti, Eloisa. 2018. Historicizing Precarious Work: Forty Years of Research in the Social Sciences and Humanities. International Review of Social History 63 (2, August): 273–319.
Zurück zum Zitat Beveridge, William Henry. 1942. Social Insurance and Allied Services: Report. New York, NY: MacMillan. Beveridge, William Henry. 1942. Social Insurance and Allied Services: Report. New York, NY: MacMillan.
Zurück zum Zitat Blanchard, Olivier, Charles Bean, and Wolfgang Münchau. 2006. European Unemployment: The Evolution of Facts and Ideas. Economic Policy 21 (45, January): 7–57. Blanchard, Olivier, Charles Bean, and Wolfgang Münchau. 2006. European Unemployment: The Evolution of Facts and Ideas. Economic Policy 21 (45, January): 7–57.
Zurück zum Zitat Bradbury, Bruce. 2004. Targeting Social Assistance. Fiscal Studies 25 (3): 305–324. Bradbury, Bruce. 2004. Targeting Social Assistance. Fiscal Studies 25 (3): 305–324.
Zurück zum Zitat Bregman, Rutger. 2020. Humankind. New York: Little, Brown and Co. Bregman, Rutger. 2020. Humankind. New York: Little, Brown and Co.
Zurück zum Zitat Burkhauser, Richard. 2009. Deconstructing European Poverty Measures: What Relative and Absolute Scales Measure. Journal of Policy Analysis and Management 28 (4, Fall): 715–725. Burkhauser, Richard. 2009. Deconstructing European Poverty Measures: What Relative and Absolute Scales Measure. Journal of Policy Analysis and Management 28 (4, Fall): 715–725.
Zurück zum Zitat Burniaux, Jean-Marc, Thai-Thanh Dang, Douglas Fore, Michael Förster, Marco Mira d’Ercole and Howard Oxley. 1998. Income Distribution and Poverty in Selected OECD Countries. Economics Department Working Papers No. 189, March, OECD. Burniaux, Jean-Marc, Thai-Thanh Dang, Douglas Fore, Michael Förster, Marco Mira d’Ercole and Howard Oxley. 1998. Income Distribution and Poverty in Selected OECD Countries. Economics Department Working Papers No. 189, March, OECD.
Zurück zum Zitat Caputo, R. 2012. The Basic Income Guarantee and Politics: International Experiences and Perspectives on the Viability of Income Guarantees. New York: Palgrave Macmillan. Caputo, R. 2012. The Basic Income Guarantee and Politics: International Experiences and Perspectives on the Viability of Income Guarantees. New York: Palgrave Macmillan.
Zurück zum Zitat Cedefop. 2011. Labour-Market Polarisation and Elementary Occupations in Europe: Blip or Long-Term Trend? European Centre for the Development of Vocational Training Research Paper No. 9, Luxembourg: Publications Office of the European Union. Cedefop. 2011. Labour-Market Polarisation and Elementary Occupations in Europe: Blip or Long-Term Trend? European Centre for the Development of Vocational Training Research Paper No. 9, Luxembourg: Publications Office of the European Union.
Zurück zum Zitat Denison, Edward. 1967. Why Growth Rates Differ: Postwar Experience in Nine Western Countries. Washington, DC: The Brookings Institution. Denison, Edward. 1967. Why Growth Rates Differ: Postwar Experience in Nine Western Countries. Washington, DC: The Brookings Institution.
Zurück zum Zitat Dickens, William, and Kevin Lang. 1985. A Test of Dual Labor Market Theory. The American Economic Review 75 (4, September): 792–805. Dickens, William, and Kevin Lang. 1985. A Test of Dual Labor Market Theory. The American Economic Review 75 (4, September): 792–805.
Zurück zum Zitat Doeringer, Peter, and Michael Piore. 1971. Internal Labor Markets and Manpower Analysis. Lexington, Kentucky: Lexington Books. Doeringer, Peter, and Michael Piore. 1971. Internal Labor Markets and Manpower Analysis. Lexington, Kentucky: Lexington Books.
Zurück zum Zitat Duell, Nicola. 2004. Defining and Assessing Precarious Employment in Europe: A Review of Main Studies and Surveys. ESOPE (Precarious Employment in Europe: A Comparative Study of Labour Market related Risks in Flexible Economies) Discussion Paper for the European Commission, December, Munich. Duell, Nicola. 2004. Defining and Assessing Precarious Employment in Europe: A Review of Main Studies and Surveys. ESOPE (Precarious Employment in Europe: A Comparative Study of Labour Market related Risks in Flexible Economies) Discussion Paper for the European Commission, December, Munich.
Zurück zum Zitat Eardley, Tony, Jonathan Bradshaw, John Ditch, Ian Gough, and Peter Whiteford. 1996. Social Assistance in OECD Countries: Synthesis Report, Department of Social Security Research Report No. 46. London: HMSO. Eardley, Tony, Jonathan Bradshaw, John Ditch, Ian Gough, and Peter Whiteford. 1996. Social Assistance in OECD Countries: Synthesis Report, Department of Social Security Research Report No. 46. London: HMSO.
Zurück zum Zitat Förster, Michael, and Mark Pearson. 2002. Income Distribution and Poverty in the OECD Area: Trends and Driving Forces. OECD Economic Studies, 34, 2002/I. Förster, Michael, and Mark Pearson. 2002. Income Distribution and Poverty in the OECD Area: Trends and Driving Forces. OECD Economic Studies, 34, 2002/I.
Zurück zum Zitat Foster, James. 1998. Absolute Versus Relative Poverty. American Economic Review 88 (2, May): 335–341. Foster, James. 1998. Absolute Versus Relative Poverty. American Economic Review 88 (2, May): 335–341.
Zurück zum Zitat Fuchs, Victor. 1967. Redefining Poverty and Redistributing Income. The Public Interest (8, Summer), 88–95. Fuchs, Victor. 1967. Redefining Poverty and Redistributing Income. The Public Interest (8, Summer), 88–95.
Zurück zum Zitat Goos, Maarten, Alan Manning, and Anna Salomons. 2010. Explaining Job Polarization in Europe: The Roles of Technology, Globalization and Institutions. CEP Discussion Paper No. 1026, Centre for Economic Performance, London School of Economics and Political Science, November. Goos, Maarten, Alan Manning, and Anna Salomons. 2010. Explaining Job Polarization in Europe: The Roles of Technology, Globalization and Institutions. CEP Discussion Paper No. 1026, Centre for Economic Performance, London School of Economics and Political Science, November.
Zurück zum Zitat Groot, Loek, and Robert van der Veen. 2000. Clues and Lads in the Debate on Basic Income in the Netherlands. In Basic Income on the Agenda, ed. Groot and van der Veen, 197–223. Amsterdam: Amsterdam University Press. Groot, Loek, and Robert van der Veen. 2000. Clues and Lads in the Debate on Basic Income in the Netherlands. In Basic Income on the Agenda, ed. Groot and van der Veen, 197–223. Amsterdam: Amsterdam University Press.
Zurück zum Zitat Jones, Damon, and Ioana Marinescu. 2020. The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund. Working Paper No. 24312, National Bureau of Economic Research, January. Jones, Damon, and Ioana Marinescu. 2020. The Labor Market Impacts of Universal and Permanent Cash Transfers: Evidence from the Alaska Permanent Fund. Working Paper No. 24312, National Bureau of Economic Research, January.
Zurück zum Zitat Kalleberg, Arne, and Steven Vallas. 2017. Precarious Work, Research in the Sociology of Work, vol. 31. Bingley, UK: Emerald. Kalleberg, Arne, and Steven Vallas. 2017. Precarious Work, Research in the Sociology of Work, vol. 31. Bingley, UK: Emerald.
Zurück zum Zitat Liebermann, Sacha. 2012. Germany: Far, Though Close—Problems and Prospect of BI in Germany. In Basic Income Guarantee and Politics: International Experiences and Perspectives on the Viability of Income Guarantee, ed. Richard Caputo. New York: Palgrave Macmillan. Liebermann, Sacha. 2012. Germany: Far, Though Close—Problems and Prospect of BI in Germany. In Basic Income Guarantee and Politics: International Experiences and Perspectives on the Viability of Income Guarantee, ed. Richard Caputo. New York: Palgrave Macmillan.
Zurück zum Zitat Mitschke, Joachim. 2000. Arguing for a Negative Income Tax in Germany. In Basic Income on the Agenda, ed. Loek Groot and Robert van der Veen, 107–120. Amsterdam: Amsterdam University Press. Mitschke, Joachim. 2000. Arguing for a Negative Income Tax in Germany. In Basic Income on the Agenda, ed. Loek Groot and Robert van der Veen, 107–120. Amsterdam: Amsterdam University Press.
Zurück zum Zitat Moffitt, Robert. 1983. An Economic Model of Welfare Stigma. American Economic Review 73 (5, December): 1023–1035. Moffitt, Robert. 1983. An Economic Model of Welfare Stigma. American Economic Review 73 (5, December): 1023–1035.
Zurück zum Zitat Moffitt, Robert. 2003. The Negative Income Tax and the Evolution of U.S. Welfare Policy. Journal of Economic Perspectives 17 (3, Summer): 119–140. Moffitt, Robert. 2003. The Negative Income Tax and the Evolution of U.S. Welfare Policy. Journal of Economic Perspectives 17 (3, Summer): 119–140.
Zurück zum Zitat Mokyr, Joel, Chris Vickers, and Nicolas Ziebarth. 2015. The History of Technological Anxiety and the Future of Economic Growth: Is This TimeDifferent? The Journal of Economic Perspectives 29 (3, Summer): 31–50. Mokyr, Joel, Chris Vickers, and Nicolas Ziebarth. 2015. The History of Technological Anxiety and the Future of Economic Growth: Is This TimeDifferent? The Journal of Economic Perspectives 29 (3, Summer): 31–50.
Zurück zum Zitat Moynihan, Daniel. 1973. The Politics of a Guaranteed Income: The Nixon Administration and the Family Assistance Plan. New York: Vintage Books. Moynihan, Daniel. 1973. The Politics of a Guaranteed Income: The Nixon Administration and the Family Assistance Plan. New York: Vintage Books.
Zurück zum Zitat OECD. 2003. Poverty and Health, DAC Guidelines and Reference Series, published in conjunction with the World Health Organization. Paris: Organisation for Economic Cooperation and Development. OECD. 2003. Poverty and Health, DAC Guidelines and Reference Series, published in conjunction with the World Health Organization. Paris: Organisation for Economic Cooperation and Development.
Zurück zum Zitat Oesch, Daniel, and Giorgio Piccitto. 2019. The Polarization Myth: Occupational Upgrading in Germany, Spain, Sweden and the UK, 1992–2015. Work and Occupations 46 (4): 441–69. Oesch, Daniel, and Giorgio Piccitto. 2019. The Polarization Myth: Occupational Upgrading in Germany, Spain, Sweden and the UK, 1992–2015. Work and Occupations 46 (4): 441–69.
Zurück zum Zitat Rifkin, Jeremy. 1995. The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era. New York: G.P. Putnam & Sons. Rifkin, Jeremy. 1995. The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era. New York: G.P. Putnam & Sons.
Zurück zum Zitat Schumpeter, Joseph. 1942. Capitalism, Socialism and Democracy, 1st ed. New York: Harper & Brothers. Schumpeter, Joseph. 1942. Capitalism, Socialism and Democracy, 1st ed. New York: Harper & Brothers.
Zurück zum Zitat Turner, Adair. 2004. What’s Wrong with Europe’s Economy? In Challenges for Europe, ed. Hugh Stephension, 1–30. New York: Palgrave Macmillan. Turner, Adair. 2004. What’s Wrong with Europe’s Economy? In Challenges for Europe, ed. Hugh Stephension, 1–30. New York: Palgrave Macmillan.
Zurück zum Zitat van Parijs, Philippe, Laurence Jacquet, and Claudio Salinas. 2014. Basic Income and its Cognates: Partial Basic Income versus Earned Income Tax Credit and Reductions of Social Security Contributions as Alternative Ways of Addressing the ‘New Social Question’. In Basic Income on the Agenda, ed. Loek Groot and Robert van der Veen, 53–84. Amsterdam: Amsterdam University Press. van Parijs, Philippe, Laurence Jacquet, and Claudio Salinas. 2014. Basic Income and its Cognates: Partial Basic Income versus Earned Income Tax Credit and Reductions of Social Security Contributions as Alternative Ways of Addressing the ‘New Social Question’. In Basic Income on the Agenda, ed. Loek Groot and Robert van der Veen, 53–84. Amsterdam: Amsterdam University Press.
Zurück zum Zitat van Parijs, Phillipe and Yannick Vanderborght. 2017. Basic Income: A Radical Proposal for a Free and Sane Society. London, UK and Cambridge, MA: Harvard University Press. van Parijs, Phillipe and Yannick Vanderborght. 2017. Basic Income: A Radical Proposal for a Free and Sane Society. London, UK and Cambridge, MA: Harvard University Press.
Zurück zum Zitat Ventry, Dennis. 2000. The Collision of Tax and Welfare Politics: The Political History of the Earned Income TaxCredit, 1969–99. National Tax Journal 53 (4): Part 2, 983–1026. Ventry, Dennis. 2000. The Collision of Tax and Welfare Politics: The Political History of the Earned Income TaxCredit, 1969–99. National Tax Journal 53 (4): Part 2, 983–1026.
Zurück zum Zitat Widerquist, Karl, and Michael Lewis. 2005. The Ethics and Economics of the Basic Income Guarantee. London: Routledge. Widerquist, Karl, and Michael Lewis. 2005. The Ethics and Economics of the Basic Income Guarantee. London: Routledge.
Zurück zum Zitat Wilkinson, Richard. 1996. Unhealthy Societies: The Afflictions of Inequality. London: Routledge. Wilkinson, Richard. 1996. Unhealthy Societies: The Afflictions of Inequality. London: Routledge.
Metadaten
Titel
Basic Income Beyond the Negative Income Tax (the 80s and 90s and a Bit Before)
verfasst von
Prof. Wayne Simpson
Copyright-Jahr
2021
DOI
https://doi.org/10.1007/978-3-030-66085-7_4

Premium Partner